CHA News

DHCS Receives Federal Approval of the 2023-24 Hospital Fee Program

What’s happening: On Dec. 15, the Department of Health Care Services (DHCS) received federal approval of the 2023-24 Hospital Fee Program, originally submitted in March 2023.  

What else to know: The program runs from Jan. 1, 2023, to Dec. 31, 2024, and will provide California’s hospitals with an annual net benefit of approximately $5.3 billion per year on an accrual basis over the 24-month period.    

To view the final approved model, refer to this document.  

Copies of the Centers for Medicare & Medicaid Services approval letters have been posted under Program 8 on the CHA Hospital Fee Program web page.  

CHA is continuing to work with DHCS to finalize the implementation schedule for the 2023-24 Hospital Fee Program. Once the schedule is finalized, DHCS will distribute all the invoices associated with the 2023 quarterly fee-for-service (FFS) cycles. Also, CHA will distribute individual schedules to every hospital participating in the program. This will include the timing and estimated amounts associated with every FFS and managed care cycle.